THE LATIN

AMERICAN
EXPERIENCE
 Index

• About the Author

• Introduction
• An obstacle to Economic Growth
• The Problem of Education Reform
• Addressing Pervasive Poverty
• Conclusions
• Follow-up questions
 The author: Francis Fukuyama

• American philosopher and economist

Source of the picture: http://fsi.stanford.edu/sites/default/files/yff-2013-3281-med.jpg

 Introduction

« There is a wide variance both in the initial degree of income

inequality among liberal democracies, and in the degree to which
these states redistribute income or invest in equalizing policies,
such as universal education, in order to reduce these differences ».

• Liberal democracy automaticaly generates inequalities.

• How strong is the investment of the State in political, juridical
and educational equalitities?
The birth defect of high inequalities

• Latin America: colonized region where the

population was forced to work for an extractive
economy.
• Big part of the population was excluded from the
political system.
• The case of East Asian countries (Taiwan and South
Korea): quick industrialisation while investing in an
education reform.
 Consequences of inequality

• Economy level (later)

• Political level
• Delegitimize the political system
• Creation of social movments/revolutions.
• Porfiriato > Mexican revolution 1911.
Andean region

• Venezuela, Bolivia, Ecuador.

• Socialism of 21century
- Regional integration
- Rejection of free capital
- Modern socialism
Bolivia

• Geographical inequality.
• Election of Evo Morales in 2006.
• Critics? Reinforce the executive power, economic
reforms unsustainable in long-term.
 The « social exclusion » of the
poor ?

Gini definition: degree of inequality on the

income distribution of the country.

Peru:
• scolarisation in secondary school (from 18 in
1960 to 73 % in 1996
• the electoral participation (14,9% voted in 1956
and 45, 3 in 2001).

Source of the image: http://www.economist.com/news/special-report/21564411-unequal-c

 An obstacle to economic growth

• Problems?
• Lack of educated workers facing a globalized world.
• From « poor class » to « middle class » (exportation sector).
• New competitors: EastAsia, China, etc.
• South America has to developp his education system.
 « The State has an obligation both to provide equal
access to public goods, and in some measure to seek
remediation of preexisting social inequalities ».

• Reduction of poverty doesn’t mean reduction of

social inequalities.
• Liberal democracy doesn’t only mean economic
growth, but also more social programs.
• How to implement social policies?
• https://www.youtube.com/watch?v=5z2_SfzpcSg
 The problem of education reform

• Allocating more resources to education should address

inequality (East Asia vs USA)
• However, investments mostly go to private education
• Call agency problems in school systems
• Higher salaries don’t mean better teachers
• Other approaches
• Vouchers that allow parents to take their children out of poor
perfomance schools (Chile)
• Charter schools (Bogotá)
 The problem of education reform

• If local government relies too much on central

government, there’s not much they can do with
educational reforms
• 2 types of reforms according to (IDB):
• Mass education for all
• Improving quality of existing education
 Addressing poverty

• CCT programs also tackle inequality

• MX: Progresa / Oportunidades
• NI: Red de Protección Social
• BR: Bolsa Familia
• Attendance rates have increased, but have students
become smarter?
• Populist leaders use CCT programs for patronage
purposes
• Is it sustainable to make universal CCT programs?
 Addressing poverty

• Rapid economic growth hasn’t been enough for

reducing poverty and inequality
• Social hierarchy still undermines progress. Vicious circles
with poverty/lack of opportunities and populism
• Populism emerges as a “cure” but makes people dependent
on government aid. Not sustainable in the long run
 Conclusions

• Economic growth doesn’t include educated workers

(≠ East Asia) facing a globalized world
• Decrease of poverty ≠ decrease of social inequalities
• Development of local communities relies heavily on
central government approvals
• CCT programs have helped address poverty in a
much more direct way
 Videos

• https://www.youtube.com/watch?v=Gt0xI6ZIFn8
• Chile - Education
• https://www.youtube.com/watch?v=4w8rzqlRAsc
• Brazil – Bolsa Familia
 Follow-up questions

• Mass education or education of quality? If only one

could be chosen in LA, which one should it be?
• Should teachers’ unions be evaluated on how good
each teacher does his/her job?
• Trade off: poverty reduction or inequality reduction?